Cover Stories

CANADA. Airport authority Vancouver International airport (YVR) has dismissed claims that it encouraged high financial bids in the tender to run duty-free at the airport
SINGAPORE. DFNI understands that Civil Aviation Authority of Singapore (CAAS) has extended the contract of beauty concessionaire Nuance-Watson (Singapore)
HONG KONG. Dufry Group has won five new concessions at Hong Kong International airport, marking the Swiss retailer's debut at the location

Insight

Travel-retail is often dismissed as a niche industry, often far removed from the domestic market
The world of international finance has lurked in the shadows of travel-retail for some time now
The relationship between landlord and concessionaire has aroused passionate opinions over recent years
Civil Aviation Authority of Singapore's (CAAS) decision to award contract extensions to its main duty-free concessionaires, DFS Group and Nuance-Watson (Singapore), will have disappointed rival operators keen to show their retailing skill at one of the world's most crucial travel-retail locations
Most travel retailers look to the high street as a source of inspiration. Many are happy to concede that domestic retailers get it right more often than they do
As King Power International Group (Thailand) puts the finishing touches to its biggest project yet—the commercial area at Bangkok's new Suvarnabhumi airport, scheduled to open next year—it's easy to forget that its dominant position in Thai airport retail is a relatively recent development

People & Company

Silja Line senior vice-president passenger services Pekka Helin is among the latest speakers to confirm their participation in the Raven Fox Baltic and East European Travel Retail Conference, to be held in St Petersburg on November 23–25. He will speak on post-abolition strategies
Travel retailer World Duty Free (WDF) saluted the best of the UK's cosmetics industry last month when it sponsored the Cosmetic Executive Women UK Achiever Awards, held at London's Claridge's
DFNI regrets to announce the passing of Kenyan retailer Maya Duty Free managing director Yogaish Sapra, affectionately known as Gogi, following an infection last month
Experienced luxury goods executive Mike Bowden seeks new partners looking for growth in Asia/Pacific

Features

Aldeasa's victory in the Vancouver airport duty-free tender is one of the most intriguing—and surprising—tender results of recent years. Only weeks after its aggressive bid won the tender in Kuwait, the Spanish retailer's latest coup has caused yet more controversy. DFNI analyses the outcome and looks at the implications for the bidders
It's been a busy year of concession changes in the duty-free industry, with some tender outcomes carrying significance beyond their immediate locations. DFNI assesses some of the most intriguing results of the year so far
After a delay of more than six months the restructure of Kuala Lumpur International airport's retail offer has begun with tenders for eight speciality stores. And the airport authority's plans are already causing controversy. By Gavin Lipsith
Some of the biggest retailers in the industry have changed hands in recent years, with strong outside interest driven by the perception that travel-retail is about to enter an upward stage in its business cycle. Here DFNI summarises some of the biggest deals since 2002
London's St Pancras Station is undergoing a transformation that will make it Britain's gateway to mainland Europe and a model tax-free station operation. Emily Pacey reports
The best retailers are those that can admit their failings
Despite a challenging market All Nippon Airways is consistently ranked among the world's top inflight retailers. Inflight sales and planning manager Kenichiro Matsuki talks DFNI through the operator's recent retail performance
The world's biggest cruise operator, Carnival Corp and PLC, is also among the most commercially-aware landlords in travel-retail. On board and on shore, the company is capitalising on continuing growth in the market. John Rimmer reports
A busy year for Dufry Group has been marked by the roll-out of the retailer's new branding along with several store openings and key contract gains. Global COO José Antonio Gea tells John Gallagher why he believes the company has found a blueprint for the future, and reaffirms Dufry's determination to build on its debut in the Spanish market
Are the dark days over for DFS Group? Rising numbers of Asian travellers and the emergence of the Chinese consumer have helped return the group to profit and the retailer is preparing for a fresh period of expansion. Dermot Davitt reports
As the beauty brand approaches what he calls "a critical year", Estée Lauder global brand president John Demsey talks exclusively to John Rimmer about the challenges ahead for one of the industry's leading companies
Another eventful year draws to a close for King Power Group (Hong Kong). The retailer's ambitions in China were checked by its defeat in the Beijing tender, but it is stealthily building its domestic business in the country to create a base from which to expand. Group managing director Antares Cheng talks to John Rimmer
Private investors have been making plays for travel-retail operators with increasing frequency in recent years. Gavin Lipsith talks to several analysts about the implications for the companies involved and for the industry as a whole
Many high street retailers envy their duty-free counterparts because of their captive shoppers and bargain prices. Retail Week features editor Liz Morrell asks the cream of the UK's domestic retail executives for their views on the duty-free market
Following a programme of refurbishment, Saresco Afrique is building its network in Africa. But, as CEO Claude Benitah tells Tina Milton, the company has long-term plans to expand beyond its African base
A tough year for anyone with business in—and affection for—the island of Sri Lanka has not deterred Alpha Orient Lanka from investing in its staff and its stores. John Rimmer finds the operator in upbeat mood as it completes the first phase of its dedicated staff training scheme

Retail News Analysis

UK. Glasgow Prestwick International airport has extended its bid review period for the retail tender it launched in September by about a month
US. The Nuance Group North America is to continue its expansion drive despite the company's loss in the tender at Vancouver International airport
UK. Cruise concessionaire Harding Brothers has revealed that it may seek new investors as it continues its expansion into the US market
JAMAICA. Representatives from the Jamaican duty-free industry are lobbying the country's government for a reduction in import tax and a complete liberalisation of the industry. Some fear that unless changes are made, retailers will be forced out of business
BELIZE. Cruiseline operator Carnival Corp is to seek retail partners to run stores in its new cruise pier in Belize, scheduled to open in November 2007
THAILAND. King Power International Group (Thailand) can become Asia/Pacific's biggest duty-free operator, chairman and CEO Vichai Raksriaksorn has told DFNI
EGYPT. Bureaucratic obstacles have prevented Egyptair Duty Free Shops from carrying out a full opening of its new post-arrivals store in the Heliopolis district of downtown Cairo
OMAN. Muscat Duty Free has extended its contract with Seeb airport operator Oman Airport Management Co after the landlord decided to build a new international airport instead of expanding the existing facility
INTERNATIONAL. Announcing its nine-month results, LMVH Moët Hennessy-Louis Vuitton said DFS Group had continued to make "good progress" thanks to a recovery in tourism in key markets and a strong management strategy
SRI LANKA. The Alpha Sri Lanka Tsunami Relief Fund is continuing its work to rebuild the village of Palliyawatte, with the help of the hundreds of thousands of dollars raised by the travel-retail industry
FINLAND/SWEDEN. Nordic investment group CapMan has completed its acquisition of Swedish travel retailer and distributor Inflight Service after competition authorities in Poland approved the deal
HONG KONG. Nuance-Watson (HK) has reported excellent results from its concourse outposts at Hong Kong International airport over the past year
DENMARK. Scandinavian Airlines System (SAS) is on the verge of completing its withdrawal from airport retail after receiving three bids for its remaining SAS Trading business in Denmark
CARIBBEAN. Travel retailer Boolchands is preparing to open a new shopping centre in St Kitts
ITALY. Airport authority Aeroporti di Roma (AdR) plans to invest €11m ($13.2m) on improvements to its commercial areas at Rome Fiumicino and Ciampino airports by the end of 2006
MALAYSIA. Malaysia Airlines expects its inflight retail business to achieve record profits of M$6m ($1.6m) by the end of 2005, a 48% rise compared with last year
BARBADOS. Grantley Adams International airport authority has issued letters inviting selected retailers to negotiate contracts for stores at the location
PANAMA. Tough conditions laid down in a tender for duty-free at Tocumen International airport are likely to discourage local operators from bidding in the contest, DFNI has learned
ASIA/PACIFIC. The newly-formed Asia Pacific Travel Retail Association (APTRA) is seeking to double its membership by the year end, president Rakhita Jayawardena has told DFNI
SINGAPORE. DFS Venture Singapore beat close competition from surprise rival Swizzle to retain the wine concession at Singapore Changi airport terminal two
ARGENTINA. InterBaires has opened a new 480sq m (5,165sq ft) arrivals shop at Buenos Aires Ezeiza International airport terminal A
BULGARIA. The Bulgarian supreme administrative court (SAC) has dismissed tender regulations issued by former finance minister Milen Velchev as "insignificant and worthless"
CHINA. King Power Group (Hong Kong) remains confident of further retail opportunities at Beijing Capital International airport despite the likely appointment of Sunrise Duty Free to supply and operate the duty-free business at the gateway to the Chinese capital (DFNI August 1)
AUSTRALIA. Adelaide airport's new $260m multi-user terminal has been beset with problems since it opened on October 15
EU. The European Commission has revealed it is preparing to publish a proposal on updating allowances for passengers coming into the EU
UK. Talking exclusively to DFNI in this issue, some of the UK's most senior high street retail executives have suggested that duty-free operators "have it easy" and enjoy an unfair advantage over the domestic market

Liquor & Wines

William Grant & Sons has acquired French brandy producer Raynal & Cie to add to its growing spirits portfolio
Regency Duty Free's new wine store at Auckland airport, The Cellar, has not performed as well as expected since it opened on September 16
Pernod Ricard-owned bourbon distiller Wild Turkey last month launched another exclusive product for DFS Group, with whom it has launched several items in the past
Imagination Unlimited International (IUI), the exclusive duty-free distributor for Canadian wine group Vincor, plans to unveil two new Inniskillin icewine gift packs at the TFWA World Exhibition in Cannes this month
Scotch malt whisky supplier The Glenrothes has broken with its tradition of producing vintage-only whiskies to launch a new limited- edition aged reference
Pernod Ricard is set to re-launch its Martell XO reference this month to reinforce its position at the premium end of the cognac market
German spirits group Underberg will underline its commitment to the duty-free channel with a number of new launches at TFWA World Exhibition in Cannes, most notably a super-premium version of its Asbach brandy
Whyte & Mackay will unveil a bold new look for all its core brands at TFWA World Exhibition this month as part of a drive to raise the international profile of its portfolio
Californian firm Taste Inc opened a new wine tasting lounge and retail store concept at Washington Dulles airport last month
Extreme Spirits is confident that its award-winning premium Wokka Saki spirit brand is ready to enter the travel-retail market after a successful re-launch in US and UK domestic markets
Scotch whisky brand Johnnie Walker comfortably retained its position as the best-selling global duty-free and travel-retail liquor brand last year, according to the International Wine & Spirit Record (ISWR)
La Fée Parisian absinthe is launching two new duty-free exclusive gift packs following its entry ino the market with Virgin Atlantic Airways and World Duty Free (WDF)
Champagne Vranken Pommery Monopole will unveil a line of new products at this month's TFWA World Exhibition in Cannes

Tobacco Products

Hungarian Duty Free (HDF) has reported a dramatic increase in sales of cigarettes since its home country joined the EU in May 2004
Travel-retail is to play a central role in the seventy-fifth anniversary celebrations of luxury tobacconist Nat Sherman, the company has revealed
Japan Tobacco International (JTI) has been forced to defend one of its best-known brand names, Mild Seven, in Hong Kong
Protégé International has revealed it is to launch a line extension to its Narrow Margin brand, Narrow Margin Silhouettes
For those of us who thought that the threat to duty-free tobacco sales started and ended with the World Health Organization's (WHO) Framework Convention on Tobacco Control (FCTC), 2005 has been an education
Alpha Airports Group has accused big tobacco suppliers of a lack of support on pricing at its travel-retail stores in Sri Lanka and India, and plans to reduce the space it devotes to the category if no remedial action is taken
Cuban cigar supplier Habanos is to unveil the Serie P No 2, a new addition to its Partagas brand
Travel-retail trade associations from around the world are to deliver regional updates on the threat to duty-free tobacco sales at an early morning meeting as part of this month's TFWA World Exhibition

Fragrances

Crystal, jewellery and fragrance house Lalique is to unveil its latest fragrance for women at TFWA World Exhibition in Cannes
Abu Dhabi Duty Free deputy managing director Dan Cappell has called for suppliers to "stand up, be counted and be accountable" for confronting the grey market in the beauty category
L'Oréal Luxury Products Division brand Lancôme is poised to introduce duty-free exclusive fragrance Tropiques to the global market
Kuala Lumpur International airport (KLIA) operator Colours & Fragrances has reported double-digit growth of 15% for the year to September
Fragrance manufacturer Mavive is to unveil several additions to its portfolio at the TFWA World Exhibition in Cannes
Euroitalia plans to reposition its Versace beauty brand and accelerate the development of its cosmetics business
The world's biggest domestic health and beauty retailer AS Watson Group has confirmed its ambition to enter the Chinese travel-retail market with partner The Nuance Group, with which it operates airport stores in Hong Kong and Singapore Changi
Estée Lauder global brand president John Demsey has restated the beauty house's commitment to travel-retail, promising a "cleaner, more consistent approach" to the market
Parfums Christian Dior has introduce three travel-retail exclusive Dior Voyage coffrets for Christmas

Cosmetics

Microdermabrasion brand DermaNew will make its duty-free debut in North America later this year through travel-retail consultancy Beauty2market,which was appointed to develop the brand's worldwide travel-retail strategy in September
Skincare brand Pureneige has won the tender to supply business class passengers on board Swiss International Airlines with moisturising cream, lip balm and facial mist
Airport authority Aeroporti di Roma (AdR) has installed men's cosmetics areas in its directly managed duty-free and duty-paid stores at Rome Fiumicino airport to address growing demand for the sub-category
Sisley CEO Philippe d'Ornano has reported "exceptionally strong growth" in sales across the duty-free market. Sales to the end of July increased by 40% in Asia and 41% in Europe
Smashbox Cosmetics is to preview its first travel-retail exclusive packs at TFWA World Exhibition in Cannes
Revlon has introduced several new products to its Unforgettable Journeys collection, created with the travelling consumer in mind
The Estée Lauder brand has added Re-Nutriv Ultimate Lifting Serum to its prestige skincare range
L'Oréal Consumer Products division, which incorporates the L'Oréal Paris and Maybelline brands, will concentrate on new additions to its dermatological home treatments at TFWA World Exhibition in Cannes this year

Confectionery & Fine Foods

As Czech Airports Authority (CAA) bids to take Prague Ruzyne International airport more upmarket during its development of the new terminal North 2, Belgian premium chocolate specialist Neuhaus has emerged as a key player in the confectionery category at the location
Favarger, one of Switzerland's oldest chocolate companies, makes its Cannes debut this week after entering travel-retail earlier this year
Indonesian airport operator PT Fortune Star is helping sister company JJ Multi Utama to gain sales and distribution for its Toraja coffee range by stocking it in the four shops it runs in departures and arrivals at Jakarta airport
Merchandising by category rather than by brand owner is the most effective way to increase confectionery sales
Swiss premium chocolate specialist Goldkenn has redesigned its Swiss Bank gold bar range and introduced two biscuit-based chocolate products for display in Cannes (Riviera Village, stand RC7)
Droste is launching a 'scenes and buildings of Holland' souvenir pack, depicting windmills and Amsterdam landmarks, as part of a makeover for its gift box range, incorporating fresh colour schemes and improved packaging quality
The travel-retail activities of Lir Chocolates have been restricted to its home base of Ireland until now, with Aer Rianta International generating all sales in the channel and 25% of total company turnover
French fine foods and chocolate specialist Aux Anysetiers du Roy is returning to Cannes (Marine Village, stand S12) after a nine-year absence to promote its Chocolate Fondue, created six years ago
Kraft Foods World Travel Retail Division is to reinforce its Mirabell brand's association with composer Mozart when it introduces new products at the TFWA World Exhibition in Cannes (Riviera Village, stand RG5)
Multi Duty Free Dept (MDFD), which was established a year ago by former Dufre partner Paolo Berentzen and his wife Dagmar following the liquidation of the agency (DFNI Nov 15 2004), will celebrate its first anniversary with its own stand in Cannes (Blue Village, stand C3)
Kraft Foods World Travel Retail, one of the first companies to recognise duty-free confectionery as a specialised discipline, is restructuring its approach in recognition of important changes in the marketplace
Swiss confectionery company Ricola, best-known for its sugar-free range of natural, herb-based sweets, is relaunching itself in the duty-free sector with a new distribution set-up offering greater focus on the market

Gifts & Electronics

Swarovski has reported a rise in sales of over 40% in Latin American duty-free in the first nine months of 2005 and is confident that growth will continue in the final quarter of the year
US-based writing instruments supplier Sheaffer is keen to increase its presence in duty-free
German electronics distributor Pasco is to launch a wireless mobile communication headset from Bang & Olufsen at TFWA World Exhibition in Cannes
Government regulations have forced Capi-Lux South Africa to postpone plans to open the world's first dedicated electronics arrivals store in travel-retail

Jewellery & Watches

Danish jewellery supplier Pilgrim will open a branded corner at Kuala Lumpur International airport later this month

Fashion & Leathergoods

Travel-retail newcomer Paquetage will make its debut at Cannes this year as part of a new strategy to develop the French brand outside its home market

Special Reports

The annual conference run by the Latin American trade association ASUTIL in association with Raven Fox is renowned as a highlight of the calendar, and this year's event was no exception. John Gallagher gauges response to the 2005 event, held in Buenos Aires
This month the new head of Maxxium Global Travel Retail, Erik Juul-Mortensen, begins his bid to consolidate the company's position as one of the industry's most influential liquor suppliers. He talks John Rimmer through the company's new global structure and its ambitious targets for growth
Airport authority Aeroporti di Roma has begun a renovation plan that includes redeveloping its specialist retail offer. Tina Milton speaks to the landlord and its retailers about the strategy for change
Managing currency fluctuation is now as crucial a part of the travel retailer's role as buying and selling products. For many companies, currency has been the biggest factor influencing margins and profitability over the past two years. Dermot Davitt reports on an issue that refuses to go away
As the Middle East continues its dizzying rate of growth and suppliers drool over the potential of markets in China and India, it's easy to overlook Europe, the region that gave birth to duty-free
As the European Union's single market becomes a reality, companies in the 25 member states are finding their businesses increasingly influenced by edicts from Brussels. Gavin Lipsith visited the city to canvass the views of politicians and lobbyists on the future of European travel-retail
A programme of build-operate-transfer projects is transforming the duty-free business in Turkey and the competition for forthcoming tenders is likely to be tough. Tina Milton reports on the opportunities and threats facing the market
Many regard the privatisation of Budapest Ferihegy airport as an attractive proposition and reports indicate that there is no shortage of potential investors. But courts have ruled the tender process invalid. What does this mean for duty-free at the airport? Tina Milton finds out
Norwegian investment firm Jotunfjell Partners has had a busy year. After a period of absence from travel-retail it has bought SAS Trading's business in Norway and Sweden and is keen to buy its remaining operation in Denmark. Lorna Strickland reports

Launch Pad

Historic Originals has made rapid progress since entering the duty-free market two years ago. Lorna Strickland talks to head of global expansion Julian Mullins about the company's plans
AS Watson Group's expansion programme has led to rapid growth in the domestic beauty market. This success is set to follow in travel-retail and its partnership with The Nuance Group is keen to make China the company's next Asian base. Tina Milton reports
Imperial Tobacco's new corporate image emphasises the broad geographical spread of its tobacco portfolio. And judging by the group's recent travel-retail initiatives the UK supplier is keen to increase its global reach. Gavin Lipsith reports
In an exclusive interview, Swiss timepiece brand Rado president Roland Streule talks to Lorna Strickland about the company's strategy for the coming year and explains how vital it is to get the image of the brand right
German tie firm PNA is planning swift expansion following the success of its entry into airport retail. Kevin Rozario looks at the company's love affair with travel-retail
The mobile phone category is among the most in-demand product groups in the electronics sector. Lorna Strickland identifies key trends and explores how the travel-retail offer can develop
The Nuance-Watson (HK) business at Hong Kong International airport, where the company holds 13 concessions, has developed in "leaps and bounds", according to Nuance-Watson (HK) managing director Alessandra Piovesana